Ufresh was established in 2011 as a brand operating in dried fig processing. The company, which is one of Turkey’s most important fig export brands, has evolved into a business model that sells dried nuts online in line with the planned changes in its business model.
“Brands are a guarantee of quality and a promise that the producer and seller will consistently deliver features and benefits to consumers.” Philip Kotler
In rapidly changing market dynamics, a static brand strategy is not enough. Brands should aim for active growth through expansion and adaptation. When building a brand, many companies assume that the logo and brand name are the end of the process. According to Philip Kotler, a company should start by defining the purpose of the brand.
All cars promise to get you from point A to point B, Volvo promises to get you there with maximum safety.
What is a Brand Expansion Strategy?
David Aaker also theorizes that a brand should express not only its functional purpose, but also the higher purpose of the brand. He also identifies the functional purpose of Coca Cola as “quenching thirst with a good taste” in relation to this thesis. For more detailed information, you can check Philip Kotler’s 6-step brand concept model.
Let’s talk about our own agenda. How did the portfolio of the Ufresh brand transform with the product expansion?
A brand extension strategy aims to expand a company’s reach by introducing new products, entering different markets or both. This strategy focuses on leveraging existing brand equity to capture additional market share and strengthen the brand’s presence in the market.
To shape a viable, attractive and sustainable brand, we consider two additional aspects. Customers’ trust that the brand will deliver what it claims. And ultimately, whether the brand benefits from the consumer’s brand utility.
Since 2011, Ufresh has been in an important place with the export of figs, a local delicacy in Nazilli, Aydın, where the brand is located, with its quality products and professional service understanding.
When Ufresh set out in 2021 to update the brand experience by expanding its product portfolio, I was working as the brand’s Corporate Communications specialist. With the slogan “Discover the Taste of the Moment” as our roadmap, we created a new concept in Nazilli, which includes 5 brands from Uğur Entegre Gıda, in order to take the living retail experience to the next level.
This is now the experience that our team has added to our lives as a new challenge in the marketing world.
When is the Next Step for Your Brand?
The decision to expand your brand requires considering various factors such as market demand, brand strength and operational capabilities. The right timing is critical. You should act when your brand has saturated its current market or when there are opportunities waiting to be discovered that are aligned with your brand’s values and customer expectations.
Bernd Schmitt’s Experiential Marketing tells us that marketers should not only target customers’ minds, but also their emotions.
“The Truths, Myths and Nuances behind Purpose” research conducted by VICE Media reveals the data behind brands’ changing consumer attitudes. 40% of the population researches the value of a brand when making a purchase decision. When choosing a brand, brand purpose (41%) outweighs other benefits such as innovation (32%) and discounts (26%).
For this reason, in order to put this goal into practice, we created the Ufresh brand, which entered the retail sector with a living retail experience, as the first link of the retail chains covering 5 brands.
Variety of Brand Expansion Strategies
Brand expansion strategies range from product range expansion to market segmentation, from franchising to strategic partnerships. Each approach has its own advantages and disadvantages. Businesses should carefully assess their goals, market conditions and brand equity before choosing a way forward.
When we observe the last 20 years, it is possible to observe changes in the purchasing behavior of buyers and the way B2B companies market and deliver value. The main driver of these changes is digitalization. The instant information environment and opportunities to offer a personalized experience at lower costs are among the forces driving brands to innovate.
The concept of planning and executing a go-to-market strategy also changes accordingly. Specializing in creating demand is one of the most obvious skills required at this point.
I think “organizing around the customer” is one of the points of interest.
Identifying the Right Product Expansion Strategy
The right product expansion strategy is built on extensive market research, competitor analysis and a deep understanding of customer needs. The goal is to identify gaps in the market that your brand can uniquely fill, capitalize on your brand’s strengths and follow a path consistent with your overall brand strategy.
Examples of Wrong Brand Expansion in Turkey
Some Turkish companies have faced difficulties due to flawed brand expansion strategies. These examples provide cautionary lessons that emphasize the importance of strategic alignment and market understanding in expansion efforts.
The Case of Pınar Dairy: Pınar Süt’s attempt to move into non-dairy markets, which is incompatible with its core brand identity, highlights the risks of moving away from the brand’s equity and expertise.
The Teknosa Case: Teknosa’s online retail initiative was hampered by the lack of a coherent strategy that integrated online and offline customer experiences. This highlights the importance of an integrated brand approach in expansion efforts.
Pricing and Positioning Strategy
An important component of brand extension is the strategic pricing and positioning of new offerings. Brands must ensure that their pricing strategy complements their overall brand positioning while remaining competitive in new market segments.
Risks of Brand Expansion
Brand expansion carries risks such as over-expansion, weakening brand identity and customer backlash. To minimize these risks, companies should carefully manage their expansion strategies and ensure that growth does not compromise the brand’s core values and customer trust.
References:
https://www.marketingjournal.org/